LIC’s first online plan “Jeevan Akshay VI”-Review

Recently LIC launched it’s first online policy with launching new version of pension plan “Jeevan Akshay VI”. Let us look at it’s features and how it is beneficial.

Note-LIC reintroduced the plan with few changes and reduced annuity rates. Refer my latest post on the same at “Jeevan Akshay VI – LIC’s Single Premium Pension Plan Reintroduced“.

Before that I want to give you small glimpse on few terminologies used in pension plans.

Annuity-In simple term you can say it as a Pension, where you will get regular income till the specified period or conditions. Two types of annuity are their 1) Immediate Annuity-In this case your pension starts immediately. 2) Deferred Annuity-In this case your annuity starts after certain period. (Suppose your current age 40 yrs and if your annuity will start from the age of 60 years).

Jeevan Akshay VI is the immediate annuity plan where you pay lump sum one time to purchase this plan and your annuity starts from next month.

Basic Features

1) Minimum age is 30 years and maximum is 85 years of age.

2) Minimum purchase price is Rs.1,00,000 for off line and Rs.1,50,000 for online purchase. But no maximum limit.

3) This policy does not acquire paid up value.

4) No Surrender Value under this policy.

5) No loan available under this policy.

6) If your purchase price is Rs. 2.50 lakh or more, you will receive higher amount of annuity due to available incentives. In addition of this, for policies sold online, a rebate of 1% by way of increase in the annuity rate shall also be available.

7) Annuity will be payable on monthly, quarterly, half yearly or yearly base according to your choice.

Types of Annuity available

  1. Annuity payable for life at a uniform rate. Under this plan on death of annuitant annuity ceases.
  2. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive. Under this plan on death of annuitant during the guaranteed period – annuity is paid to the nominee till the end  of the guaranteed period after which the same ceases. But if death occurs after guaranteed period then annuity stops immediately.
  3. Annuity for life with return of purchase price on death of the annuitant. Under this plan on death of annuitant, annuity ceases and the purchase price is paid to the nominee.
  4. Annuity payable for life increasing at a simple rate of 3% p.a. Under this plan on death of annuitant annuity ceases.
  5. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant. Under this plan on death of annuitant, annuity ceases and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
  6. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant. Under this plan on the death of annuitant, annuity ceases and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
  7. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor. Under this plan on death of annuitant, annuity ceases. Full annuity is payable to the surviving named spouse during his/ her life time and purchase price is paid to the nominee after the death of the spouse. If the spouse predeceases the annuitant, the annuity ceases and purchase price will be paid to the nominee.

How much you get by one time investment of Rs.1,00,000?

Is it worth to invest??

From the above table you notice that persons who are at their younger will receive less annuity than the older. Eventhough this plan provides facility to enter at the age of 30 yrs but when you calculate for purchaser of this annuity as 60 years then it looks bit attractive.  For example if you opt the annuity type 1, age 60 years and investable amount is Rs.25,00,000 then you will receive monthly pension as Rs.19,479 throughout your remaining life span.

Now if we calculate the returns for the annuity type 1st and considers post retirement life as 20 years (means purchaser who is currently at 60 years of age and his life expectancy 20 years from current age means till the age of 80 years) then return on his investment will be around 6.90%. Now let us see the annuity type 4th by using the same annuity purchaser data, where every year your annuity will increase by 3%, then return on your investment will be  7.03%

But remember two things in mind, whatever the annuity you will receive in this plan is taxable as per current tax slabs for individual and it will not support the inflation adjusted returns. Hence if we consider the both factors then it is a big no no…plan. Eventhough from the annuity type 4 we can assume that inflation will be dealt to the some extent, but still if you consider post tax returns then it will definitely eat your annuity returns drastically.

It is really a good plan for investors who want some steady income throughout their remaining life span without bothering about taxation and inflation. Also one more positive point is, if you invest in this plan then you will diminish the interest rate risk. Because instead of investing in this plan, if you invest in monthly income plans, then you are not sure the same interest you will receive after maturity too. But in this plan you no need to bother, because whatever market interest rate,  you receive stable income.

Remember too that, always invest your retirement accumulated corpus into secured products rather than risky products. Because if your age is 60 years then you are not in a position to take the same risk what 30 years of age investor can take by investing in equity oriented schemes. So think twice and decide to proceed further based on your requirement.

178 Responses

  1. Sir,
    Found your article very useful. Has Jeevan Akshay plan been withdrawn? LIC’s main portal lists it under withdrawn plans, whereas LIC Direct,, still has link to purchase that plan. Besides, the annuity rates listed in LIC direct portal are higher than what you have mentioned in the article. Which portal is to be trusted?

    Is the annuity paid under this plan subject to TDS? The comment by Sidharth posted in June 2018 suggests TDS is applicable, but the plan details document does not mention TDS. Can you please clarify? Thank you.

    1. Dear Guest,
      The earlier version of Jeevan Akshay was withdrawn. But the new version is available now also. Regarding the change in annuity rates, they revised recently. You may go with LIC portal. Do you feel avoiding TDS means avoiding tax?

      1. Sir,
        Thanks for your quick reply. The LIC Direct and normal LIC portals show different details causing confusion. I will contact their customer service or an agent to get correct details.

        I realize no TDS does not mean no tax. But in the absence of clear information on TDS for this policy, there is the concern that LIC may apply 30% TDS rate even if the customer comes under a lower tax rate slab and customer will be forced to claim tax refund

  2. Is this policy can be revoked once the bond is issued. As other policies can be revoked within 15 days from the date of the bond issued. As my brother in law who is a NRI invested in it having a misconception of the policy is Tax free told by agent. Can we still revoke it he purchased it around month ago policy is not received yet.

  3. my annuity money credited to my NRE account. LIC started deducting the tax @ 31%, Annuity(monthly) amount is 20621 deduction is 6372 I have made a complained, they are asking to produce Tax residence certificate from the country. I just forwarded my residency permit. I am currently working in Qatar.

      1. Basav and Basu
        I also experienced same issue. I had an annuity of 1,04,000. They paid me only 71000/-. Do you have any resolution for this ??

  4. Dear Sir
    1. If I purchase JA VI through online, where should I submit the existence certificate and other documents?
    2. Is it possible to submit Existence certificate online on required frequency?
    3. Which branch will service my request or if any queries, which branch will I have to contact?
    4. I will be going for option 7, and in this case, which branch my wife will have to contact in case I am deceased and she has to get the annuity. Also the same for nominee?

  5. Hello Basu,
    Appreciate you for this Great write up, the provided information is very much helpful for me.
    on the interest rate aspect, i have following few queries, it would be great if you could clarify those.

    1. Would like to know the current interest rate.
    2. Does the interest rate revision happen during the Policy terms? if yes, then how often.
    3. comparing FD vs Jeevan Akshay VI what is your recommendation.


    1. Prakasam-1) Refer the LINK.
      2) During policy period, even if it happens also, it will not affect YOU. It is for those who want fresh investment. The rate which is there during the policy period will be applicable for you till the end.
      3) Hard to generalize.

  6. I am 44-year old and would like to know about Option-7 for an amount of INR 30,50,000. The above calculator shows a monthly payout of 16,982. I would like to know what would be the TDS amount on the monthly payout. I would like my wife to receive the same pension amount after my death and my son to receive the purchase price. Kindly clarify.

  7. Jeevan Akshay VI probably be Closing from today 30 Nov, 2017. From 1st, Dec, 2017 New Return rates will be applicable, maybe less then current rates

  8. Sir i want to know that can we get our purchase price back when we needed?…… Or it is only available at death of the annuitant.

  9. If I take Jeevan akshay6 under option 7 for 4 lacs. What do I get if the policy is taken/purchased offline vs online. I want specific amount to be mentioned. Not %. That’s already mentioned 1%extra.

  10. Thanks Basavaraj Tonagatti,

    I have one question,
    I have every year 150,000, for invest, that I normally invest in FD.
    is it possible to buy this policy every year.
    or this policy is like PPF, (1 person can have only one PPF account).


  11. I am an NRI and like to retire after couple of years. I am 54 years old right now. Please advice a pension scheme where I can get Rs.40,000 per month. What would be the amount I have to invest in one go for such returns. Also advice the tax implications on my monthly returns.

    Krishna Murthy

  12. Hello Sir,

    My age is 33. I want to know that if I buy JA VI will annuity start immediately for me or will it start once i am 60

  13. I want a clarification on what does ‘ Rebate of 1% by way of increase in the basic annuity rate will be available’ mean ?
    what would be the difference if i apply for jeevan akshay PLAN 189 Online for an amount 250000 or through an agent.
    Pleazse advice.

          1. I got a call from LIC and I was told that if i apply online the amount i get as annuity would be 1 perc extra throughout lifetime if i apply online

  14. I was informed by the Asst manager Sales of LIC, that if we pay the premium from NRE account, then the monthly pension will also be credited to my NRE account. Is this factually correct?

      1. Thanks Mr Tonagatti for the clarification, which means that it will not be taxable since the credit is received in the NRE account, just like receiving interest income on NRE deposits. Is this logic correct.?
        Is the application form available online in LIC’s website?

        1. Annuity is for retirement. If you retire and become resident Indian you have to close your NRE account as per regulations. Then how how funds can go to NRE account? Once you become resident Indian annuity is taxable right? Investors should decide why they need annuity. For regular income during working time or regular income after retirement. According to me, investor need regular income after retirement and then NRE account issue is not important.

      2. Dear Mr. Tonagatti,
        Request your clarification on above query …

        Can I invest in LIC JA6 with premium debited from my NRE account and get the pension returns on the same NRE account…
        – Can LIC credit INR to NRE account?
        – if yes will this pension be taxable? As usually NRE income/ credits are not taxable

        Waiting for your reply

        Thank you.

          1. 1) YES NRE credit is possible if premium is paid out of NRE funds
            2) Debatable- No clear clarification. However, the LIC sales staff confirms it is not taxable if credited to NRE account

    1. No, you cannot receive annuity in NRE account. One can deposit only in foreign exchange in NRE accounts (for example in USD, UKP, EURO, etc). You can receive the annuity in NRO account.

  15. Sir

    if i take policy LIC Jeevan Akshay VI, I came to know that i will have to submit Self Existence Certificate from time to time !!

    If true, then what will be the time period (how long after taking the policy) for self existence declaration


      1. Sir
        thanks a lot for the reply, i inquired LIC helpline, they told every 5 years, i have to submit the certificate of existence

  16. Basavaraj, Lets say I want to by this policy for 50 Lakhs which I would have received from selling properties. The money will be in multiple banks and can I give multiple cheques to buy one policy?
    How to deal with bulk payment?

  17. Hi,

    Can you suggest any better plan then jeewan akshay v1 ?secondly is thier any other product where in i invest single
    premium and that product take care of inflation also with guarantee of fixed rate of jeewan akshay.

    simply i want fixed rate for life long plus inflation also to be taken care of.

    my age is 42 investment is 30lakhs

    Gurpreet singh

      1. thanks for reverting..actually my question is is thier any such product which take care of inflation also?

        1. SBI Life has a similar Annuity Plan with 3% & 5% increase in annuity every year option.

          I prefer Jeevan Akshay 3% increase option as LIC is 100% govt owned for one, unlike SBI – one factor that’s important as the insurance company has to outlive you when you look at lifetime annuity returns.

          2ndly trying their Annuity calculators, for the same single premium LIC gives more returns.

          Pl check their websites before you decide.

          Good choice to create a regular pension income while you are working, at such an early age. Many just dont seem to think that far ahead & squander away pecious income in unwarranted luxuries.

  18. Sir,
    I am 59 years,wish to invest in JA VI plan an amount ofRs.20 Lakh. I need to opt in between option 3 and 7. Considering the Indian mentality in general on the life span of an individual, and my observation of option 7 which says if the spouse predeceases the annuity stands terminated and the purchase price is returned to the nominee .In both the options there is a marginal difference of pension amount receivable .In such case what is your advice ?


    1. Manohar-In case of 3, your spouse or nominee will receive the return price and annuity stops there itself. However, in case of 7th option, first you, after that your wife. Once, both not survive, then the return of price is paid to nominee. Hope your doubt cleared.

  19. I’m 52 years old and would like to invest in LIC Keegan Akshay 6 with annual annuity and premium repayable to the nominee after my death.I want pension for myself alone.I want to invest 20 lakhs. The LIC agent says 7.4? interest.Whether the same percentage will be applicable throughout my life or any reduction possible? Whether the policy will give guarantee for 7.4? through out my life.

  20. If i choose the option4 i.e. increasing @3% and I invest 1,00000 what will be the return yearly return on 1st,2nd and 3rd year , please please illutrate

      1. i am 38 year old and i am looking to invest 1 crore ,,,how safe is this ? my money is NRI money so i dont want to pay tax. AS you know NRI do not pay tax in india on NRE account or NRE FD. Please advice what is best for me. Thank you

          1. i want something monthly like jeevan akshay 6 and number 7 where i can get money and after my wife will get money and then my kids get lum sum . i like the policy but like i mention i am nri i dont want to pay tax. so if i get this policy do i have to pay tax? also any other policy you think of where i can get better interest rate but again i dont want to pay tax. also i want the security of my money as well.Thank you

                  1. one lic agent told me that if i invest in Jeevan Akshay VI my income will be tax free because he will show me NRI. Is this correct? i am talking about Jeevan Akshay VI and he said LIC will not take any tax from me and all the money will come to my NRI account. How LIC works? They pay after tax or before tax? LIC agent telling me the truth?

                    1. Saini-He is using the different route to escape the tax. He is claiming LIC will not deduct TDS. But many don’t know that avoiding TDS does not meant avoiding tax. It is taxable income. He is misguiding you.

                    2. Let me explain this to you. I am also NRI and you can apply for this policy only through NRO account and NOT through NRE account.
                      Money in NRE is not taxed in India and this is the account you should be using if you want to save on taxes.

                      However any investments in pension schemes can be done only through NRO accounts and the tax rate for NRO account is flat 30.9%.

                      If you file your taxes in India, and if your cumulative earnings in NRO account does not reach the taxation limits, you can get back tax deducted by bank by filing your income tax.

                      Hope this clarifies. I was also interested in this scheme but have opted out solely as the scheme is not beneficial to NRI because of high taxation in NRO accounts.

                      If anyone has different views, please do share them.

      2. I am 40 years old. If I invest 1000000 what could be annual return at the age of 60 ? I choose the option 4 i.e. increasing @3% per annum.

          1. Actually I want to know the % of return , not post tax return . How the 3% increment happens/calculated.

            1. Atanu, pl put 41 (as your query is a year old!) & 100000 in the URL for JA VI calculator:

              For 3pc increasing option, for monthly frequency of annuity payment, it shows 429rs (as of today/Aug’17). Next year, from policy anniversary month onwards, you will get 3pc simple interest extra, monthly i.e. 13rs more, net 442rs & so on 13rs/year your monthly annuity increases.

              In 20years that’s a 13×20 = 260rs increase & at 61years your monthly annuity will be 702rs/mnth.

              Hope this answers your question.

              Pl remember that the 3pc is calculated once on the 1st annuity you get, in this case 442rs & is 13rs in your case. 13rs is the magic fixed amt with which your annuity will increase every year. To know your annuity in any year just multiply 13 by the number of years & add to your current annuity shown on the JA VI calculator URL.

              If you want to skip the URL, a simple calc is that for your amt, they give around 5.3% (not exact, but approx for an idea purpose) annuity returns at monthly frequency when you are around 40years. For 1Lakh@40years that’s 5300rs/yr & mnthly annuity of 442rs/mnth.

              ALso pl note that they have higher 1st returns (which means higher 3pc increments too) for 1) higher single premiums above 2.5lakhs, above 5lakhs, above 7.5lakhs etc 2) for purchasing online 3) for selecting annual payout. You choose online payment for higher amount, choosing annual payment fo annuity you get the best 1st annuity & hence best increments & best overall returns. I would hence not recommend a One Lakh policy at all 🙂 – rather, acuumulated to a 2.5L or a 5Lakh at the least – finally, your call!

  21. if i put jeevan akshay for 20yrs at age 55 then i pay 310875 and monthly i get 25575 for 20yrs. in FD ill get approx same interest but the initial amount i still have in FD whereas in the policy i get only tge pension amount for 20yrs but not the initial amount. right? is this profitable sir? u say that FD is for very less period only but still we can renew and get the interest rate at tat period of time. but in policy i loose my 3lakhs. so i wonder if this is ok. pls enlighten

  22. Sir,
    Nowadays we have tax-free bonds that have term periods of 15 years or even 20 years. These offer interest rate of over 7%, though the rate may decrease for future issues if inflation goes down. Wouldn’t investing in such bonds be a good alternative, if not absolutely better in all ways, to this annuity plan, especially for people who wish to go for the second variant of this plan? I realize that annuity plans do have some benefits like absence of reinvestment risk.

  23. Dear Sir,

    I need to Invest in Jeevan Akshay.
    Kindly let me know the details, basic details I got from Net.
    Which option is Best.
    My age is 38 Years.

  24. Hi Basunivesh,
    My current status is NRI and i am looking for good retirement pension plan and one term insurance plan for 1 Cr.

    My current age is 32 and planning to invest 20K yearly for term insurance plan and approx 60K yearly for pension plan.I have read some reviews and people tell to invest in PPF/SIP for pension plan and buy a annuity plan with lumpsum amount later when i turn 58 or 60.

    please suggest.

  25. I am very much thankful to receive the reply off my question dt 28/11/2015
    I will be higly ogliged if comparision of annuity rates of LIC with pvt life insurance companies like ICICI,HDFC,Aviva,Max etc
    I want to know how much Pension will be paid Monthly & Yearly
    MY age 75 years
    MY investment Rs 500000 (five lacs)exclusive of S T etc
    My annuity option Annuity payable for life at a uniform rate with return of purchase price on death of
    the annuitant
    Parmanand N Jethani


  27. Dear Sir
    I am 49 years old. I want to take Jeevan Akshay 6 policy. I want invest Rs.500000/-. opted for case 7.
    According to LIC Calculator monthly annuity works out to Rs. 2929/-. I would like to know whether it is net payment to me or any deductions will be there from LIC.. pl clarify.
    Further if I take policy through online, as per LIC document I am supposed to get annuity Rs.2929 + 1% (29.29) = Rs.. 2958.29/- OR I get annuity of Rs.2929/- only for premium of Rs. 495000/- Kindly explain in detail.
    Manjunatha C

      1. Sir ur blog is good. Few doubts i have.. what is that 3% increase? So 7% will increase to 10%? And as many asked me too has doubt of tax on the pension amount. I think if we get Rs.10000 or more interest p.a then its taxable. So if we invest 3 lakhs n we get pension of 20000 approx (which is 7%) it will b reduced more by deducting tax. Right? So finally wat we get is not 7% at all. N moreover we wont get the invested amount back right? So comparitively is FD not a better choice? Im confused. I dint find a place to comment so replied to a random comment.

        1. Guru-3% increase means let us say this year your monthly pension is Rs.100, then next year it increase to Rs.103. It continues to increase on yearly base. Any amount receivable from this product is taxable. Yes, if upfront you are receiving 7% return, then post tax the return will be less. No, in certain options above, they provided the feature of getting amount back. Check the options carefully. FD can’t give you an option to go beyond 10 years. Whereas in this product you can go for lifelong.

          1. sir in only one option they mention that amount will be returned after death. tat too they give around 7.2% interest. so for example for 3 lakhs i get 22275 p.a i will be taxed for this amount (how much percentage?) so this means i wont get even the mentioned amount. and other options also give pension around the same rate but there is no mention of amount return, so this means that they wont return the initial 3 lakhs? if so whats the use? In bank FD we get approx same interest but the principal amount is still with us. anyways i accept that even FD interest are taxable. so in what way policy is better? U say FD cant give beyond 10yrs. means? after 10yrs we can again renew the FD right? but ofcourse at that time we cant guarantee interest rate will be good. and here again this interest what they give is fixed? wont vary later? also im paying 3.625% service tax for this policy. so considering all this i dont know which is better. so need ur opinion

            1. Guru-Taxation will be as per your tax slab. Yes, if in other options they not mentioned any return amount means they will not return anything. Let us say after 10 years the interest drop again to the current level, then what you do and where you park the amount? Interest rate risk is there in FDs which is not here. Please understand that you can renew FD after 10 years, but do you get the same interest of what they offering you TODAY? I am not pushing this product. If it suites you, then go ahead.

  28. Hi Basavraj, Nice job and explanations to every aspect of this plan. I recently invested 5 lacs in the plan with option 7. Lateron I learned that ther is 1 % rebate for online purchase. Now the query is this 1 % is on total investment or the yearly annuity amount which I will recieve at end of year. Example: If I invested offline 1 lac in option 7 , I will get 6930 ( with 6.9 or 7 % interest PA). If I invest same 1 lac online will I get 8 % return or 6930 + 1% of 6930?

    The rebate system is not very clear, can you pls elaborate more on it?

    thnaks in advance. Many regards. Prakash Jadhav

          1. If I nvested offline 1 lac in option 7 , I will get annuity 6930 ( say 7 % interest PA). If I invest same 1 lac online will I get 8 % return or 6930 + 1% of 6930. Is that correct?
            or one time rebate on the investment amount of 1 Lakhs ie., 1000Rs ?

            1. Mohan, for your 1 lakh in option 7, starting annuity 6930rs (annual payout) if booked offline, they give instead a starting annuity of 1% extra i.e. 6930+69.3rs = 6999.3rs (annual payout) if booked online.

              Now for option 7 this will give a higher 6999.3rs returns for lifetime.

              It gets even better for option 4 with 3pc increasing where the yearly annuity increment is based on the 1st annuity. & for option 4, 1st annuity even in offline is more say 7140rs. So with online option you will get not only a good 1st annuity of say 7140+71.4rs=7211.4rs but each year annuity increments by 3pc of this higher annuity i.e. 216rs.

              All amts mentioned above are random & only percentages are shown as is for us to get an idea. For actual amts pl chk by inputting your age & amt & after selecting the option you prefer.

              For single people option 4 looks good I feel – a little adjustment towards inflation in a way but like Basu mentions so truly we can never put in fixed returns investments & expect to beat all possible inflations in future! Some fixed income sense of security especially after retirement wise this is ok

  29. Dear Sir,

    I am 39 year old working professional and would like to take some e term plan. Currently I do not have any term plan. I can afford annually 10 to 20k. If it is with some return at end of policy term that would be great.

    Would you advise LIC e term plan or any other. I want a cover of 50 lakhs also with the one which has hassle free claim settlement and good will in the market.

    Thank you,

  30. what is the service tax we have to pay for a 50 L investment. Tax will deduct by LIC or it will be investor responsibility. annuity 3.6 L per year is under nil tax bracketen. for sr citizen

    pls help and clarify

  31. Hello Sir,

    My Father Age is 64 and I want approx Rs 4000 monthly for him. So How much I have to invest in plan to get monthly Rs 4000 (Rs 48000 annually). Please let me know and also what happened of money once he is no there to receive

  32. Sir,

    Your all post explaining the LIC PLANS are very helpful with the thought coming to Mind that you are genius. but i am bit confused with jeevan akshay with different types of annuties can u pls elaborate and clear the things.


  34. Dear Basu ,


    I would like to invest 2Lk in this plan.I am 30 years Old.I will receive 14,000 per annum.
    If I opt for monthly anniuty then I may receive even less. Let me consider INR.1000 per month as a fixed Income.

    I will opt for 6th plan so that my after my death my wife will also receive the same every month.

    I will move this INR.1000 to some good mutual fund for another 30 years and I may get good returns.

    By spending 2Lacks now ,it may give good returns at my retirement.and also in near future the rate of Interest will also reduce in India like Foreign countries.

    Please suggest me wheather its a good Idea or not. ?


  35. I want to take LIC Jeevan Akshay for my mother(age 57).I want to know if I’ll invest Rs.2,00,000/-(Its for a single time??) and then go for pension for lifetime,then what pension amount my mother will get every month for lifetime??

    Can you please have advice and some sort of calculation for it?

    Kindly let me know,I want to take policy at the earliest.


  36. Sir, You have mentioned that “if the purchase price is Rs. 2.50 lakh or more, you will receive higher amount of annuity due to available incentives”. Could you please let me know the extent of the higher annuity for a Rs 25lac & Rs 50 lac purchase price. Thanks

  37. anybody wants to ivnest in pension i have very beautiful plan for you, invest 1lak p a for 16 year and get 2lakh life long , and how much you want accoridingly calculate this schme is from LIC or invest 1laks for 25 years and get 5laks for life time

    pls revert on [email protected]

  38. hi i wanted to know whether there is any policy in lic where if u give an yearly premium of 48000 for a person of
    50yrs old for a period of 15 yrs then at the complete of 15 yrs the person will get an amount of 1300000 . the SA for the policy is500000.
    reply as early as possible

    1. Atish-Seems to be your agent proposed you with these figures right? Just for confirmation you are commenting. Please ask more details from your agent and get back here. We discuss who is correct or whether such plan really exist or not 🙂

  39. Hi Basu,

    Thanks for your time and sharing information. I am aged 44 and want to get retirement benefits from the age of 55 onwards for 20 or 25 Years and in case of my demise wife to get the same for rest of the years, considering inflation and tax benefits. I am an NRI and want to opt for Rs. 30 Lakhs as one time investment. Please advise the best option you would have chosen in the above scenario. Appreciate your time.

    1. Tony-If you are considering inflation only then 4th option is better (but I dislike the option of 3% raise as it never be a case in history that our inflation was just 3%). But whatever you receive from this plan will be taxable income as per current laws. So no need to discuss on this. But if you want benefit to your wife also (post your death) then go for 6th option. Instead you can opt for combo of 4th and 6th based on requirement of your wife’s retirement pension.

  40. Hi ,

    Can we purchase more than 1 for self at different time period So for example

    I purchase one in June for 1 lakh and second in sept for 1 lakh

  41. Dear Sir,

    Need your guidance in managing my parents retirement plan. My Dad who is a Govt employee will retire by end of 2016. Currently he has below investments:

    1. Monthly SIP of Rs 2500 – Birla Sunlife – Since last 2 years
    2. EPF Accumulated so far : 17 lk and now has monthly contribution around 3k and increased his VPF to another 5k
    3. LIC Policy : Jeevan Nidhi 6lk SA – All premium paid. which will mature in 2021 (Also taken Loan 4 lk on that plan)
    4. Gratutity : Hoping to get 10lk during retirement.
    5. Taken Health Insurance : for 5 lk from Star Health pays yearly premium of around 20k
    6. He pays for few other LIC policies for mom and himself – annual premium will be around 15-20k

    Mom is houswife. and they have an apartment for which currently 7 lk home loan is pending.

    His monthly salary is around 40k/ month and expense is around 20-25 k / month excluding Home EMI.
    Kindly suggest where and how much he can invest till the retirement and post retirement so that he keep getting his monthly expense of 25-30k from the investment.

    Kindly note: He doesnt have any liability and i will be contributing on their behalf.

    I know email looks like request for Financial services 🙂 but advice will be really helpful.


    1. Shekhar-Why can’t you opt for some % to above said plan and rest in Senior Citizen Savings Account? Also what do you mean by “I know email looks like request for Financial services”, can you elaborate more?

  42. For all those retired or to-be retired employees who wish to recieve guranteed pension,irrespective of which Annuity Scheme you want to choose please positively invest ur 24 lakhs in two products of India Post.
    ->Monthly Income Scheme(max investment Rs 9 Lakh joint scheme)
    ->Senior Citizen Savings Scheme(max investment Rs 15 lakh,interest receivable quarterly)
    These two will combinedly provide u monthly pension of Re 17,800(enough for middle class family) & @ the end of specified tenure you’ll recieve ur amount without any affect which can be re-invested.
    Please note that in case of LIC Jeevan Akshay-VI(considering ur age as 60 yrs) if you want to recieve Rs 17800 pension per month you need to invest Rs 31 lakhs as against 24 lakh in Post Office.
    Please note that backed by Govt of India investments in Post Offices are of the safest form & safer than even State Bank of India & LIC.

    1. Poorvottar-Everything seems to be perfect. But what about the inflation? Which option of this plan or your post office schemes will take care of? Also after maturity from MIS or SCSC, is there any guarantee that you receive the same interest rate what you got in past? At least by investing in this product once can get a same amount throughout the period, which is not possible from Post Office Schemes. Also please elaborate more how Post Office is more secured than SBI or LIC (I am not defending either SBI or LIC).

      1. Sir the investment options of Post Offices have been running since British Era(when there were very limited options of investment)..the other day I came across an uploaded image of National Savings Certificate issued in 1889 & even today you consider wide options of investment & go for excellent return as well as safety of ur fund,nothing can beat Public Provident Fund(limited to 15 lac max) & National Savings Certificate(No Upper Limit @ all !!)..Similarly MIS is also an age-old product so in upcoming times we can only expect better interest rates which will support the then-inflation.Have faith on Govt 🙂

        1. Poorvottar-I have few questions, please clarify my doubt 🙂
          1) Do you choose the product which suites to your need or first you select the company which exist since British era to invest?
          2) You have not replied to the concerns I raised like inflation risk and interest rate risks which MIS and SCSS inherit. Please reply to it.
          3) Also for your information, currently including PPF, NSC or SCSS interest rate changes on yearly base which are linked to Govt Bond yield. Hence an investor who invest in NSC today may not get the same interest rate after one year if he try to invest freshly.

  43. Dear Basavaraj,

    Thanks for your detail informations.
    I need some advise. I am living in the UK in last 5 years, but may return in couple of years time. Here I have some pension funds, which I can only transfer to some selected Indian funds and will block till my 55 years age(I am 40 now). LIC is one of them. You know the interest rate in the UK is very poor, thus I am thinking to transfer some amount (around 20-25 Lacs). Will it be worthy to select this fund? what interest rate shall I get and how much do I get annually? Will this amount taxable, if yes how much taxh I have to pay etc. Myself and my few friends are thinking this. So it’ll be helpfull for us to take the decision. Thanks for your advise and expertise.

    1. Indranil-It is good choice what you decided. But in my view considering the post tax returns (yes it is taxable according to one’s income tax) and missing of inflation linked pension may hurt you in future. Please let me know what other selected Indian funds which are eligible to transfer. Then I may review all and let you know.

      1. So far my information ING is another provider.
        Can you pls give some idea on LIC JEEVAN AKshay option (d)as follows…
        ”Annuity payable for life increasing at a simple rate of 3% P.A”….what is this 3% P.A? Thanks for your help

        1. Indranil-In this option your pension increase by 3% every year and your pension will be for life time. This option you can say as marginally adjusted to inflation but not fully.

  44. Sir,


    I would like to invest 10 lacs in my fathers name (his DOB 02.04.1942 ie 71years) in option 7 (return of purchase price after his death), i heard there are incentives for investing above 2.5 lacs and 1 % special rebate if opted online … can u please guide me … what amount will my father get PA.


    Srinivas Rao

    1. Srinivas Rao-Yearly around Rs.72,000 but their may be slight difference as I have not considered the rebates what you are talking about. But please also note that this is taxable income for your father. As you told, better to go online and utilize the incentive of 1%. Let me know if you have still doubts

    1. M-It is not clear how much is service tax. From LIC site what I found is this info regarding Service Tax “If your purchase price is Rs. 2.50 lakh or more, you will receive higher amount of annuity due to available incentives. In addition of this, for policies sold online, a rebate of 1% by way of increase in the annuity rate shall also be available”. Hence unable to say exactly.

      1. I checked on other blog and I guess that mention 3.09%.

        Velu can you send me your email id. I can help you. As I know someone who has done similar transfer.

        1. M-I need authentic info from LIC. If you have that then you are welcome to share the same with me. You can get my mail id from “Contact” page of this blog.

  45. Hi Basu

    I live in Uk and contribute to NHs pensions here. I’m planning to relocate to India in 2015 but NHS pensions allow me to move my pension contributions so far to liC jeevan Akshay 6. Is it good plan . I’m 44,wife is 41. We both have some lumpsum from pension here. If for example I want to invest Rs.10 lakhs from NHs pensions what will be my return monetary in option 1 and what paperwork is needed to move my Uk pensions to this scheme
    Dr. Velu Guruswamy

    1. Velu-First let me check whether this plan is available for NRIs or not (I hope your status is NRI). Second thing I am not aware about NHs rules and regulations, like whether they allow to move to LIC or not. Please check this issue with your current pension provider. Third thing is, without knowing your income, expenses and your risk profile, I am unable to suggest you this plan is right or wrong. If the features of the above plan suites your risk profile, meets your retirement expenses then go ahead. Else better to chose some other options. If you don’t want to share these details on this public platform then I request you to mail me at [email protected]. We discuss about your concerns much personally.

  46. sir, If we put one lakh in FD, we will get minimum 10,000 per year as interest and we will get back the amount after the specified period. But in this policy LIC does pay yearly annuity is very less only after 70 years it is little bit higher. why this difference sir.? That means it is better to invest in FDs rather than go for annuities? please suggest. I am running 50 years now.

  47. Will you please elaborate , that how to invest ,for those retiring , to beat the inflation,decent returns ,without tax deduction @ source since banks are deducting even if form 15 G given,saying IT authorities told to deduct , and get back the amount by filing the returns whatever the meg are amount..Thanks

    1. Bala-It seems to me that you want all the benefits of the world for your investment 🙂 Please specify whether you are about to retire or you are planning for retirement. If you are planning to retire then let me know your current age and your retirement age.

  48. Great analysis … Please keep on doing the good work.. I have one query .. if I go for option 3.(Annuity for life with return of purchase price on death of the annuitant) in this policy, will that gurantee me the same annuity amount every year irrespective of the market rate of interest fluctuations?

    1. Subhasis-Yes the returns will be fixed throughout the period irrespective of interest rate. But think and decide will this offering really fulfill your retirement need?

  49. Dear sir, as stated on the LIC site there is 1% incentive for online purchase as well as higher number of annuities on purchase of more than 2.5L.. Does these additional benefits (online purchase of more than 2.5L) make this policy attractive. Can you create a sample table and share it for everyone’s benefit. Thanks – Piyush

    1. Piyush-Still that one 1% benefit will not make it attractive. But it make sense to older not to younger. Sure, I will try to create a table on this benefit too.

  50. Hi …im panning to go for this plan…would u tell me if i should go for fd’s or this plan and the annual returns in these….

  51. Hi sir,
    I would like to purchase a policy of 3 lakhs for my parents who are aged above 50 years. Could you please let me know the premium i have to pay yearly and also the monthly income my parents would get.

    1. Vaishnavi-In above table I showed you for the investment of Rs.1,00,000, so can make it 3 times and calculate yourself with which option you want to go. If still find difficulty in understanding then let me know.

  52. If one has to take in to account inflation and taxation, what are the avenues open for those retiring and want to invest in a safe and secure way. Whether in all plans , whether the period over /death . whether the original investment is returnable to the nominee(except those mentioned with return of purchase price) . Increase in annuity 3% means (sl No 3) . whether the amount of inanity sanctioned in the first year increases by 3%. Further if you could put forth a comparison of FD/Annuity with tax implications for various slabs taking in to inflation, a hypothetical case study ,it will be of useful. Thanks for the wonderful educational blog

    1. Bala-For retirement the major drawback especially in Indian context is not planning in advance. You need to create your retirement corpus in such a way that if you invest in an secured product during your retirement period it takes care of inflation risk and interest rate risk too. Hence eventhough their are currently FDs or such type of pension plans available for retirement investments, if you have created enough corpus which sustains both the risks then you no need to worry.
      Regarding the options of this plan, in some cases you will get the invested corpus back and in some it is not. Yes regarding Sl.No.3 option, every year your payout will increase by 3%. It is not wise to compare FD with annuity, reason is, during the time of retirement one need continues payout from his or her invested corpus which is missing in FD. Hence I dont think it is wise to compare FDs with annuity. Let me know your views too 🙂

  53. Shashidhara Murthy…
    Thanks for the valuable information. I want to invest about Rs. 5Lakh under this plan, Type – I. I am aged 56 years and want to invest through online. I am an IT assesse. Do you recommend this for me? If so, how I should proceed with it?

    1. Shashidhara Murthy-Thanks for your comment. Before investing consider these points-your expenses (how much % of your expenses depend on this plan), inflation and taxation. If you consider all the three said points then this plan is not suitable for you. Because your returns from this plan is constant throughout your life span. So inflation is the major part which will eat your returns from this plan. Second thing is taxation. Whatever you receive from this plan is taxable. Hence post tax returns is very less. Considering inflation and taxation means this plan is not worth to invest for.
      The same thing I expressed in above article. If you are not bothering about inflation and taxation, and looking for some constant income stream then go for this plan. Otherwise I will not recommend you to invest in such plans.

    1. Mukesh-I mentioned the same thing above. If you go online then you will get 1% more annuity than offline mode. Also for online mode minimum purchase is Rs.1,50,000 and for offline mode minimum purchase is Rs.1,00,000. These two are the only differences.

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